ECON498 ISSUES IN LABOUR ECONOMICS
| Course Code: | 3110498 |
| METU Credit (Theoretical-Laboratory hours/week): | 3 (3.00 - 0.00) |
| ECTS Credit: | 6.0 |
| Department: | Economics |
| Language of Instruction: | English |
| Level of Study: | Undergraduate |
| Course Coordinator: | Lecturer YILDIRIM KOÇ |
| Offered Semester: | Spring Semesters. |
Course Objectives
Issues in Labor Economics (ECON498)
Term: Fall 2025/26
Time & Place: Fridays 14:40–17:30, FZ15
Instructor: Sinem Ayhan
General Information
Why do some workers earn more than others? Why do people invest in education, and what returns do they gain? What explains persistent gender wage gaps? How does migration reshape labor markets? This course explores these and other central questions in labor economics by combining theory with real-world data.
The aim is twofold: (i) to build a solid understanding of core labor market models, and (ii) to critically evaluate how well these models explain actual labor market outcomes. We will move between theory and evidence —learning the models, then assessing them through applied research articles that draw on diverse data sources and are published in leading field journals. A detailed syllabus, including weekly topics and required readings, will be provided during the first class.
Given the breadth of the field, the course will focus on selected topics, with particular emphasis on the empirical evaluation of public policy. Topics include labor supply and demand, labor market equilibrium, human capital, labor market discrimination, and international migration.
The course is structured in two parts:
- Part I (first half) develops the theoretical foundations of labor supply, labor demand, and labor market equilibrium, and connects them with empirical evidence and applications.
- Part II (second half) builds on this foundation to explore human capital, labor market discrimination, and international migration. These topics will be introduced with some theoretical concepts, but the emphasis will be on empirical analysis and policy evaluation.
Reference Textbooks
Selected chapters from the following textbooks will be used throughout the course:
- George J. Borjas, Labor Economics, 8th Edition, McGraw-Hill Education, 2020.
- Pierre Cahuc, Stéphane Carcillo, and André Zylberberg, Labor Economics, 2nd Edition, MIT Press, 2014.
- Kılıçaslan, Y. (Editor), & Dayıoğlu Tayfur, M. (Editor), (2023). Labor Economics. Eskişehir: Anadolu Press.
Prerequisites
There are no formal prerequisites. However, prior knowledge of basic microeconomic theory and econometric methods will be helpful.
Course Schedule and Venue
Lectures begin on October 3, 2025 and will be held on Fridays, 14:40–17:30, in FZ15, Department of Economics, METU.
Evaluation
- Midterm Exam (40%): Covers theoretical concepts and empirical applications related to labor supply, labor demand, and labor market equilibrium.
- Final Exam (60%): Requires students to write a short essay on a research question from any course topic, reviewing relevant literature, discussing empirical difficulties, and developing reasoning with theoretical concepts and empirical methods from the course.
Contact Information
Sinem Ayhan
Department of Economics, METU
Office: A04
Email: ayhans@metu.edu.tr
Course Content
An up-to-date review of modern labor market theories, related policy issues and applications, as well as methods and findings of empirical research, including national and regional level analysis of these markets both in developed and developing countries. Open to economic and administrative sciences majors as well as to students from computer science, regional planning and engineering.
Course Learning Outcomes
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Program Outcomes Matrix
| Level of Contribution | |||||
| # | Program Outcomes | 0 | 1 | 2 | 3 |
| 1 | Use and develop skillfully economic concepts and theories, analyse economic behaviour and events by conceptualizing and evaluating via scientific methods (Has skills regarding theory and analysis) | ✔ | |||
| 2 | Evaluate how economic policies affect economic performance and how economic interest, relationship and interaction affect policy decisions (Knowledgeable about economic policies) | ✔ | |||
| 3 | Design and carry out studies regarding data collection, analysis and evaluation, that can be used in decision processes at every level (individual, firm, government, etc.)(Knowledgeable about quantitative and qualitative methods) | ✔ | |||
| 4 | Evaluate systematically and compare economic knowledge, phenomena and methodology; Develop critical, creative/innovative approaches to these (Critical, creative, innovative) | ✔ | |||
| 5 | Understand current economic phenomena and relevant political developments using information and data from various resources and provide multifaceted explanations (Concerned about current events) | ✔ | |||
| 6 | Follow developments in economic theory and methods; Be open to continuous learning (Open to continuous learning) | ✔ | |||
| 7 | Have skills to work independently and in a team (Individual and teamwork) | ✔ | |||
| 8 | Approach critically to economic and societal events and problems while being sensitive to social problems; Produce solutions to these problems by scientific approach; Share own thoughts (Sensitive to social problems) | ✔ | |||
| 9 | Communicate clearly, effectively and fluently (in English and Turkish) verbally and in writing, utilizing new technologies (Has effective communication skills) | ✔ | |||
0: No Contribution 1: Little Contribution 2: Partial Contribution 3: Full Contribution